Chinese equities are starting 2023 well, especially in light of a disastrous 2022 in which isolation policies prevailed. Instead, there now appears to be a softer policy on the part of the economic superpower, both towards the outside world and towards its own entrepreneurs. This writes Bloomberg.
The MSCI China index is up 5.3% since trading resumed yesterday. That makes it the best start to an economic year since 2009, following a nearly 24% loss in 2022. In particular, the debt-ridden construction and technology sectors are now emerging as popular investment targets.
The world’s second-largest stock market is becoming increasingly attractive to investors, especially as optimism about the potential benefits of ending the zero-covid policy outweighs concerns about its near-term effects. Furthermore, a series of policy changes involving a return to economic pragmatism appear to be imminent. These policy changes include extra support for homeowners and an end to the Australian coal import ban.
Source: BNR
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